6 Factors That Predict a Successful Start-Up

Is there any set formula that makes a startup successful? If not, then what are the factors that predict the future of a startup?

The answer lies in an interesting mix of influences that impacts the growth and the success of a startup.

First Round did research with over 600 founders and 300 companies that showed various surprising and reassuring correlations between age, education, gender, and location of a startup. It revealed that almost all the high-profit investments had at least one female founder. The research also reflected that young founders with prestigious educational backgrounds tend to create more successful startups.

The current business scenario has made it extremely easy for anyone to start a business. However, sustaining and converting it into a profitable venture takes a lot more than just a favorable environment.

Here are a few crucial defining factors that foretell the imminent success of any startup.

A Strong Team

Forming the right core team is absolutely crucial to any successful startup simply because even if you have exceptional entrepreneurship qualities, it’s rare to accomplish great success alone. Having a strong core team is important to ensure the best execution of the company’s vision. It is the team that breaks down the company’s vision into short-term goals and fulfills them to pave the road to success.

The quality of the core team i.e. their attitude, aptitude, knowledge, competence and skills, directly influence the speed at which a startup achieves its growth milestones. A good team brings synergy to the combined effort of the people and maintains motivation for better results across all levels of the business.

Business Model

A strong business model is imperative to gain the attention of investors and stand out in the crowd. The business models of top performing startups clearly reflect their vision and signify the value their business will generate for customers while ensuring profit making. For a startup, a business model focuses on designing a process for the organization to consistently deliver value promises and make way for its growth.

Ideally, a business model is always in complete alignment with the current market trends and play a definitive role in creating growth platforms that align with the company’s vision. With a good business plan, an entrepreneur maps the company’s future course of action, along with sources required to achieve the goals.

Capital Analyzation

Along with the early stages of funding, working capital plays an equally important role in a startup success. Even if finding initial fund capital difficult, opening a line of credit is always a possibility. Any startup without sufficient capital will flounder under the weight of its own debt, and obtaining adequate funding will need a strong business plan. The solvency of the founders, the amount of seed money required, cash flow expected, and expansion plans need to be carefully analyzed to ensure the smooth flow of business operations.

  • Alacrity for Watershed Response

Irrespective of how careful you are, there’s always a chance that you may run into problems. For example, a social media post may go horribly wrong or a marketing effort might go haywire. Such problems can be small hiccups for big organizations, but for a startup, they can be game changers. How you respond to a crisis as a team is crucial to the future of the company. The way a crisis situation is addressed is crucial in deciding the future course of action. Even one poorly treated problem can put your company under fire. Therefore, startups have to be ready with an effective response plan for any unforeseen circumstance.

  1. Marketing

In the modern-age, the approach of building a product and then testing it is outdated. Many startup founders who come from a non-marketing background often believe that marketing is all about advertising and spending huge amounts of money in product promotion. The truth is that marketing for a startup starts from the root level, where it is used to test the idea and gather initial information to determine whether or not the product idea is a success with the customers.

Marketing is the essence of every business venture, big or small, because it allows customers to truly engage with the product. With the advent of digital media, marketing has become extremely cost-effective and, therefore, is an indispensable factor in a startup’s success.

  1. Implementation

Any business plan is as valuable as its ability to be executed. Even a well-researched plan, if not properly executed, can compromise the existence of the business. When a business plan is executed well with the help of a strong team, it offers a steady platform of the growth for the startup.

Execution is the final test of an idea and all the hard work that has gone behind growing it from the seed level. Only when a plan is successfully implemented can the startup dream of becoming a successful venture. It requires constant hard work, staying updated with market trends, progressive product testing, and strong financial support to execute the plan correctly.


From putting the idea on paper to implementing its execution, every stage of the business is interdependent. Even if a single stage is poorly managed, it can weaken entire chain. It is important to remember that a startup does not run merely on a great idea. It requires the constant support of a skilled team and the correct functioning of each factor to successfully nurture and develop it.

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Rose Martin is a blogger and her main interest in blogging is for start-ups, entrepreneurship, finance, investment and frugal living. When she’s not working, she enjoys cooking, sipping a cold beer and spending time with family.